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SPX Corporation Announces Third Quarter Charges

10 October 2000

SPX Corporation Announces Third Quarter Charges

    MUSKEGON, Mich., Oct. 9 SPX Corporation today
announced it will report pretax third quarter 2000 charges of approximately
$76.1 million.  This amount consists of restructuring and special charges of
$63.8 million and other charges totaling $12.3 million.

    Restructuring Actions:
    *  During the quarter, Service Solutions closed its Wayland, Michigan
facility and reduced the financial and administrative operations at its
Kalamazoo, Michigan and Montpelier, Ohio locations.
    *  Service Solutions is also consolidating several of its European
operations into its Hainburg, Germany location and restructuring its
manufacturing operation in Brazil.
    *  In April the company acquired Fenner Fluid Power.  The company will
close its Owatonna, Minnesota, Power Team facility and consolidate operations
into Fenner Fluid Power's Rockford, Illinois facility.  The combined business
is called SPX Fluid Power.
    *  Contech/Metal Forge initiated a rationalization plan at its
Clarksville, Tennessee forging operation.
    *  The special charge includes costs to consolidate manufacturing
facilities, rationalize certain product lines and reorganize various
functional areas within the company.
    *  The charges are considered an investment under the company's EVA
financial management and compensation system and will require a return in
excess of the cost of capital.

    Components of the Charges:  Reported earnings for the third quarter 2000
will include pretax charges of $76.1 million ($44.9 million after-tax) or
$1.39 per share as described below.

    *  Cash costs for severance, termination benefits, and other expenses
associated with the restructuring will total approximately $21.7 million
pretax, ($12.8 million after-tax) or $.40 per share.
    *  Adjustments to property, plant and equipment, in-process research and
development expense and goodwill impairment will equal $42.1 million pretax,
($24.8 million after-tax) or $.77 per share.
    *  Cost of goods sold will include a $12.3 million pretax charge
($7.3 million after-tax) or $.22 per share primarily for discontinued products
associated with the restructuring of Service Solutions.

    Commenting on today's announcement, John B. Blystone, Chairman, President
and Chief Executive Officer said, "Our strategic review process helps us
identify those changes necessary to continue to grow, improve and add value.
We are taking action now to discontinue lower margin product lines,
consolidate manufacturing capacity and position the businesses to exceed
customer expectations."